CBD Grade A workplace rents climb 0.5% in Q3 2025 as emptiness dips to 4.7%

The third quarter of 2025 introduced one other spherical of regular shifts in Singapore’s business property scene. Demand for each workplace and retail house remained agency, at the same time as broader financial circumstances stayed blended. With provide tightening in some areas and new-to-market manufacturers coming into in others, Q3 supplied a clearer image of the place the market is likely to be heading into 2026.

Let’s dive into the findings from JLL Analysis and Cushman & Wakefield to see what occurred throughout workplaces and retail prior to now quarter.

Singapore’s financial setting formed demand

Earlier than we get into issues, it helps to grasp the bigger financial image. Our financial system continues to be on observe to develop between 1.5% and a couple of.5% in 2025, with an improve from earlier forecasts. A lot of this energy got here from front-loaded exports forward of anticipated tariff will increase from the USA. Nevertheless, development may reasonable towards the tip of the 12 months as these tariffs take full impact globally.

On a constructive word, rates of interest have began to ease, inflation has cooled, and Singapore continues to profit from comparatively low tariff publicity in comparison with different Asia-Pacific economies. These elements supported occupier confidence, particularly within the workplace market, the place companies are step by step enlargement once more.

CBD Grade A workplace rents continued to climb

Based on each JLL and Cushman & Wakefield, rents within the CBD for Grade A workplaces rose by about 0.5% in comparison with the earlier quarter. This regular development was largely pushed by tighter availability, with emptiness charges narrowing to 4.7%, down from 5.2% in Q2.

Right here’s how key CBD workplace submarkets carried out in Q3 2025:

Supply: Cushman & Wakefield

Because of this in the event you’re an organization in search of high quality house within the CBD, you’re competing with extra companies for fewer obtainable choices. Some tenants have responded by selecting renewals somewhat than relocations, particularly when weighed in opposition to capital expenditure wants. Others have turned to extra versatile setups like fitted-out or plug-and-play workplaces, which often value extra however assist reduce upfront bills.

Web absorption stayed wholesome

Occupier exercise stayed resilient in Q3. Web absorption for CBD Grade A workplaces reached about 197,000 sq. toes, constructing on 185,000 sq. toes in Q2. This exhibits that companies are nonetheless prepared to take up house, even with greater rents and world uncertainties.

Should you’re questioning the place these strikes are occurring, a lot of the momentum got here from the continued “flight-to-quality,” the place corporations commerce older premises for newer, better-located ones. On the identical time, a wave of redevelopment initiatives is pushing tenants out of older buildings, creating what’s often known as displacement demand. Each traits are serving to to replenish obtainable house shortly.

Decentralised workplaces confirmed enchancment too

Whereas CBD house will get the highlight, decentralised workplace areas additionally had their share of constructive information. Emptiness charges outdoors the core enterprise district fell from 7.2% to five.3%, although rents solely nudged up barely by 0.1% in Q3.

With vacancies falling, Cushman & Wakefield expects decentralised workplace rents to develop quicker within the coming quarters. This might attraction to occupiers who wish to keep near expertise swimming pools in suburban hubs whereas saving on prices in comparison with CBD rents.



Provide outlook: Tight pipeline forward

Trying forward, the provision of recent CBD Grade An area will stay restricted. From 2026 to 2027, solely 0.6 million sq. toes is predicted to be added, primarily from Shaw Tower in 2026 and Newport Tower in 2027. To place that into perspective, this pipeline is just about one-third of historic annual demand.

This scarcity is already seen, with shadow workplace house dropping to only 93,000 sq. toes in Q3 – the bottom in 9 years. With demand holding up and provide this tight, you’ll be able to count on rents to rise additional into 2026.

Key transactions within the workplace market

A number of notable offers additionally formed the quarter:

Supply: Cushman & Wakefield

On the leasing entrance, large relocations included MSD and Jane Avenue Capital taking over house at IOI Central Boulevard Towers in Marina Bay, Consolation Delgro shifting into Labrador Tower, and DP World Asia Pacific increasing in Raffles Place.

On the funding facet, CapitaLand Built-in Business Belief acquired a 55% curiosity in CapitaSpring’s workplace and retail element for over S$1 billion, whereas Keppel purchased the workplace portion of Jem in Jurong for S$462 million. 

JLL’s take: Sturdy demand for premium workplaces

JLL Analysis highlighted the identical underlying pattern – occupiers proceed to prioritise premium areas regardless of greater prices. The tight pipeline for brand new provide is placing additional upward strain on rents. Whereas companies are aware of prices, the “flight-to-quality” theme continues to be driving exercise.

JLL additionally famous that decrease world rates of interest and Singapore’s trade-friendly place within the area may draw extra relocations into the town. This might additional tighten demand within the CBD as multinational companies consolidate or improve into better-quality premises.

Retail market: Orchard and suburban malls stayed resilient

Past workplaces, the retail sector had a constructive quarter as effectively. Prime retail rents in Orchard, Different Metropolis Areas, and suburban malls rose by 0.3%, supported by regular demand from new worldwide manufacturers.

Right here’s a take a look at the retail rents and vacancies in Q3 2025:

Supply: Cushman & Wakefield

Some names you may need observed opening lately embody Australian frozen yoghurt chain Yo-Chi at Orchard Central, Chinese language magnificence model Joocyee at Wisma Atria, Flying Tiger Copenhagen at Bugis+, and U.S. athletic label Alo at Marina Bay Sands. These entrants present that world retailers nonetheless view Singapore as a first-rate testbed for enlargement.

Suburban malls additionally noticed rents inch up by 0.3%. These centres proceed to profit from sturdy non-discretionary spending, resembling groceries and every day necessities, alongside low emptiness ranges, which stood at 6.6% in Q2.

Restricted retail provide developing

The retail pipeline seems to be simply as tight because the workplace market. Between 2026 and 2029, new provide will common simply 0.3 million sq. toes yearly, lower than half the 10-year historic common.

Key upcoming initiatives embody:

Supply: Cushman & Wakefield

Some small initiatives are due sooner, resembling CanningHill Sq. and Tengah Park Neighbourhood Centre in 2026, in addition to Chill @ Chong Pang in 2027. Larger additions like Bukit V Mall and the Tanglin Buying Centre redevelopment will solely be prepared from 2028 onwards.

Because of this, just like workplaces, retail rents are prone to keep supported by tight provide over the following few years.

Outlook: Confidence with warning

The widespread thread in each the workplace and retail sectors is that demand continues to outpace provide, conserving rents on an upward trajectory.

For workplaces, the flight-to-quality pattern and restricted new completions imply CBD rents are prone to preserve rising into 2026. Decentralised places may additionally acquire traction as vacancies shrink. For retail, regular demand from worldwide and native manufacturers, mixed with only a few large initiatives within the pipeline, ought to assist maintain rental development regardless of the challenges confronted by sure operators.

On the identical time, companies are nonetheless being cautious. Many are balancing development plans with value controls, whereas occupiers are relying extra on versatile leases or renewals to handle bills. However total, Singapore’s business property market stays resilient – and the third quarter proved simply that.

The submit CBD Grade A workplace rents climb 0.5% in Q3 2025 as emptiness dips to 4.7% appeared first on .